Tax Reform Panel Suggests N800 Per Dollar Customs Duty Rate

The Presidential Committee on Fiscal Policy and Tax Reforms has advised the federal government to set an exchange rate of N800 per US dollar for calculating Customs import duties.

This recommendation was revealed by Taiwo Oyedele, the committee’s chairman, during a press conference held in Lagos on Thursday.

Oyedele discussed the difficulties businesses encounter due to the unpredictable foreign exchange (FX) market, which leads to constant fluctuations in the import duty rate. He stressed the importance of establishing a stable rate to enable better business planning.

“When we prepared the budget, we projected an exchange rate of N800 to the dollar, but now it’s over N1,000. Businesses need to be able to plan,” Oyedele remarked. He urged the government to issue an order fixing the exchange rate at N800 for customs import duties for the remainder of the year.

This proposal follows recent adjustments by the Nigerian Customs Service (NCS) to the FX rate used for tariffs and duties. On May 27, the NCS set the rate at N1,480 per dollar, based on recommendations from the Central Bank of Nigeria (CBN) reflecting current market trading activities.

Muda Yusuf, the director-general of the Centre for the Promotion of Private Enterprise (CPPE), also commented on the matter. On May 16, he proposed that Customs adopt a quarterly exchange rate ranging between N800/$ and N1,000/$ for import duties assessment to provide greater predictability for businesses.

Oyedele’s recommendation for a fixed rate of N800 per dollar aims to address these concerns and promote more stable economic planning for businesses involved in importation.

These suggestions are part of the committee’s broader initiative to reform Nigeria’s fiscal and tax policies to foster economic growth and stability.